Year-Over-Year Chicago Real Estate Foreclosures Spike

April 01, 2012

We just discussed new-home sales and the hurdles the real estate industry faces. One hurdle holding back a housing recovery is foreclosures, and the Chicago real estate market is dealing with one of the highest rates in the country.

According to RealtyTrac’s latest U.S. Foreclosure Market Report, year-over-year foreclosure filings in February were down a mere 8 percent, the lowest annual decrease since October of 2010.

note that says, notice of foreclosure, with keys on top.One in every 637 U.S. homes in February received some sort of foreclosure filing, which includes default notices, scheduled auctions and bank repossessions.

Amongst the Chicago real estate market, that stat goes to one in every 302 homes, which ranks our city at fifth in the country for highest foreclosure rate.

According to the report, 12,587 homes in the Chicago metropolitan area received foreclosure filings last month. While that’s an 8.5 percent drop from January when 13,750 foreclosures were reported, it’s also an amazing 43.2 percent increase from the 8,788 listed in February 2011.

Throughout Illinois, 13,298 homes received a filing last month, down 7.32 percent from January’s 14,349, and up 38.6 percent from 9,592 in February 2011. With one in every 398 homes receiving a filing, our state ranked sixth for highest foreclosure rate last month.

“February’s numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed,” said Brandon Moore, CEO of RealtyTrac. “Although national foreclosure activity was pushed lower by decreases in a handful of larger states, 21 states posted annual increases in foreclosure activity, the most states with annual increases since November 2010.”

Scheduled auctions increased at least 25 percent on a year-over-year basis in 13 states. Illinois took the No. 2 spot in the country with an increase of 170 percent in this category last month.

In addition, REO — or real-estate owned — activity rose last month at least 20 percent annually in 17 states, including Illinois, where our 42 percent increase ranked us at eighth in the country.

“February’s numbers point to a gradually rising foreclosure tide,” said Moore. “That should result in more states posting annual increases in the coming months.”

To see all foreclosure stats for Chicago, Illinois and the nation, visit realtytrac.com.

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